Geeta Gopinath said economy destroyed by lockdown,

Geeta Gopinath told that India will have to increase demand for recovery soon. Direct income support is a means for this. People do not have money to spend right now.

• India’s economy is expected to decline by 4.5 percent this year
• Geeta Gopinath said that India will have to increase demand for faster recovery
• Domestic Level Improvement Needed to Make India a Manufacturing Hub

The International Monetary Fund (IMF) has forecast a decline of 4.5 percent in the Indian economy on Wednesday. This historical decline has been predicted due to the corona virus epidemic.

In a special conversation with TV Today Group news director Rahul Kanwal, Indian-origin IMF chief economist Geeta Gopinath said that India’s economy is expected to decline by 4.5 percent this year. Although he expected the economy to be back on track in the year 2021, the growth rate is expected to be 6 percent.

Two reasons behind the decline in GDP

she said that there are two reasons behind the projected decline in the Indian economy, first- the economy is deeply hurt due to increase in lockdown, second- there is no possibility of fast recovery in the economy. However she admitted that the decision to lockdown was correct because of Corona.

she said that economies across the world have been affected by Corona, but it may take more time for India to get out of it. she said that the countries which have thrown cash into the economy, they will make a rapid recovery.

Geeta Gopinath told that India will have to increase demand for recovery soon. Direct income support is a means for this. People do not have money to spend right now. Because the lockdown in India has affected a large section. Therefore, the focus should be on increasing demand. Many countries of the world have adopted this method, which is correct.

she said that the Indian economy will come back on track only when cash support will work. In such a situation, the role of the government increases. Along with sending money in the hands of the common man, MSME will also have to help.

she told that behind the decline in India’s GDP, there are also cases of rising corona. However, the contact tracing policy that India has adopted so far is correct. But there is a need to increase testing. The government needs to spend on hospitals.

Geeta Gopinath said that in the midst of the Corona crisis, India also has a chance to increase manufacturing power. But this requires major changes at the domestic level. Gopinath said that if India works on rapid recovery, then in 2021, 6 percent GDP can be achieved.

6 percent rise again next year

The IMF also estimates that in 2021-22, the country will return to the fast track again and may see a strong economic growth of 6 percent that year. However, he has cut the estimate. The IMF had earlier said that the Indian economy will grow by 7.4 percent in FY 2021-22. Similarly, IMF had earlier predicted that the Indian economy will grow by 1.9 per cent in 2020-21.